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Is Covenant Logistics Group (CVLG) Stock Outpacing Its Transportation Peers This Year?
The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Covenant Logistics (CVLG - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
Covenant Logistics is one of 143 individual stocks in the Transportation sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Covenant Logistics is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CVLG's full-year earnings has moved 20.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, CVLG has moved about 26.8% on a year-to-date basis. At the same time, Transportation stocks have lost an average of 6.1%. This means that Covenant Logistics is outperforming the sector as a whole this year.
Golar LNG (GLNG - Free Report) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 108.6%.
In Golar LNG's case, the consensus EPS estimate for the current year increased 15.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Covenant Logistics belongs to the Transportation - Truck industry, which includes 13 individual stocks and currently sits at #22 in the Zacks Industry Rank. Stocks in this group have lost about 10.1% so far this year, so CVLG is performing better this group in terms of year-to-date returns.
On the other hand, Golar LNG belongs to the Transportation - Shipping industry. This 46-stock industry is currently ranked #46. The industry has moved +35.8% year to date.
Investors interested in the Transportation sector may want to keep a close eye on Covenant Logistics and Golar LNG as they attempt to continue their solid performance.